EU rules on investment services

The EU has established a comprehensive set of rules on investment services and activities with the aim to promote financial markets that are

fair

transparent

efficient

integrated

The first set of rules adopted by the EU helped to increase the competitiveness of financial markets by creating a single market for investment services and activities. They also ensured a high degree of harmonised protection for investors in financial instruments, such as shares, bonds or derivatives.

However, after the 2008 financial crisis it became clear that a more robust regulatory framework was needed to

further strengthen investor protection

address the development of new trading platforms and activities

Markets in financial instruments directive - MiFID

MiFID is the markets in financial instruments directive (Directive 2004/39/EC). In force from 31 January 2007 to 2 January 2018, it is a cornerstone of the EU's regulation of financial markets. It governed

provision of investment services in financial instruments by banks and investment firms